To choose the new flag, various groups of proposals were presented. The first group of these contained three. The first proposal, called the "Czech model", was similar to the Czech flag, but with red, green and blue colors representing the three communities. The second consisted of a light blue background with a golden olive branch, representing peace. Finally, the third proposal also had a light blue background but included a figure in the shape of the country in the center.

In the second group of proposals, the first alternative stood out. The flag would be composed of a tricolor diagonal design in white, blue and red  and in its center the map of the country would be located in blue surrounded by 10 yellow stars. The second alternative was similar to the previous one, but included 12 stars in honor of the European Union. The third alternative expanded the central white stripe, while the map was yellow with a green border and under which two olive branches were located in the same way as on the United Nations flag. The fourth and final design had the same emblem as the third, but the stripes were horizontal, with blue being the top color, white being the middle, and red being the bottom.

In 1998 a group of flags designed by the High Representative for Bosnia and Herzegovina Carlos Westendorp was presented, which contained three designs. The first would be the base of the current flag, but with a light blue color, similar to that of the UN flag, and with 10 fixed stars. The second and third designs consisted of light and yellow bars interspersed on the light blue background.

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The current flag, based on Westendorp's first design, was adopted on February 2, 1998. The design would be chosen by the High Representative, as the Bosnian parliament was unable to find a solution acceptable to all parties. This flag was selected as it does not contain any historical or other references to the Bosnian state. The UN blue color was changed to a darker blue, resembling the flag of the European Union. Carlos Westendorp declared that this dark blue symbolized the union of Bosnia Bosnia and Herzegovina with Europe. Finally, the flag would be officially presented during the opening ceremony of the 1998 Nagano Olympic Games.

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The flag of Bosnia and Herzegovina is formed by a blue cloth, with a yellow isosceles right triangle in the center, whose legs have a size equal to the width of the flag, one of its legs touching the upper edge of the flag, and being the other facing the outer side of the flag. Along the hypotenuse of the triangle appear in white seven five-pointed stars and two half stars that appear from the edges of the flag.

The three points of the triangle represent the three nations of Bosnia and Herzegovina (Bosnians, Croats and Serbs). The stars, which represent Europe, are supposed to be infinite, hence the two half stars that poke out from the edges of the flag. The colors of the flag are usually associated with neutrality and peace (white, blue and yellow).